Whether or not to furnish a property is a choice each landlord must make, given that furnishing a rental house would need time, additional work, and money.
Offering a furnished or partially furnished rental home has several advantages, including higher rent, but there are also some drawbacks.
Some tenants prefer a furnished unit so that they do not have to deal with finding furniture. Others prefer an unfurnished unit so that they can choose the furnishing they like and make the place feel more like home.
So, as a landlord, how do you make the decision when renting out your home?
The best thing you can do is evaluate the advantages and disadvantages.
In this post, we put together a list of pros and cons to consider before renting out a furnished home.
What Is a Fully Furnished Apartment?
A furnished apartment means that it comes with everything needed to live comfortably.
A furnished apartment often has the following furnishings: standard kitchen appliances, beds, chairs, a table, a dining area, coffee tables, and a couch.
The level of furnishing is determined by the equipment and furniture offered. As a landlord, choosing the furnishings you want in your furnished property is entirely up to you.
What Is a Semi-Furnished Rental?
A home can be described as semi-equipped in many different ways, from a basic apartment with only the essential utilities to one that is almost entirely furnished.
A semi-furnished unit will typically have cabinets, ceiling fans, curtain rods, and all the typical fixtures you would anticipate in a livable rental.
Semi-furnished rentals guarantee that tenants will not move into a completely empty apartment.
The upfront cost of a semi-equipped rental property will normally be lower than that of a completely furnished one.
Pros of a Furnished Rental
1. Higher Rental Pricing
Rent prices can typically be raised for furnished rental properties.
That said, the cost of furnishing a unit is not cheap, so you need to see if the increased rent will eventually cover the costs of furnishing.
Take the time to conduct thorough market research before setting an exact price for your rental property.
2. Higher Security Deposit Amount
When you offer a furnished rental property, you will need to request a larger security deposit because your rental home comes with furniture and appliances.
Apartments with furniture need a little extra insurance in the form of a larger security deposit.
Make sure you have money set aside to pay for things like a broken toaster oven or ripped sofa cushions.
3. Predictable Target Market
Since you can charge more rent for furnished apartments, you will typically draw in financially stable tenants. You may profit from targeting this market if the rental property is located in a college town or a more urban setting where there are probably many possible renters looking for such a rental.
Negative Aspects of Furnished Rentals
1. More Funding is Required
In addition to the obvious expense of purchasing furnishings and appliances, you will often have upkeep costs.
With a furnished unit, you will need to:
Conduct routine checks to make sure the furnishings are in good shape
Remedy minor property damage immediately
Clean appliances to reduce the deterioration
Conduct preventive maintenance
All of this takes additional time and money.
2. Not all Tenants Will Like the Chosen Furniture
Sometimes you might not be able to rent your flat with the furniture in it, or someone might be interested in some of your offerings but not all of them.
This implies that you might be forced to move stuff back and forth or place it in storage. All of these tasks need time and can incur storage expenses.
3. Storage Prices
If the furnishings cannot remain in the rental property, you will have to make arrangements for storage. For instance, if the renter requests to use their mattresses and bed frame, you will have to find storage for the bed frame and mattress that was in the unit. This can be expensive.
You will also need to pay for storage if work needs to get done to the unit. For instance, if you want to redo the flooring of your property between vacancies, you will need to pay for storage space to store all the furniture.
Consider Location and Target Demographic
Location and target demographic is essential to consider.
For instance, are you located in a college town? If so, this means you will attract many students. Students will likely want to rent furnished or semi-furnished apartments.
However, if you are located in a suburban area with many families, you would not probably want to furnish your rental because families may already have their own furniture.
To Furnish or Not to Furnish: The Choice Is Yours
Furnishing your apartments will create unique challenges to overcome, like shorter leases, higher upkeep costs, and higher renter turnover rates. However, furnished apartments bring in more money.
Providing a fully furnished rental may be ideal for you depending on whether you want a short-term or long-term lease.
So, consider the pros and cons of both!
Conclusion
It can be challenging to decide whether to furnish your rental properties or not, which is why consulting a seasoned property manager can be super helpful.
We are a prominent property management company that is capable of handling all your property concerns.
We can help you succeed and get consistent results with our flexible property management solutions tailored to your specific needs. Because of our expertise and knowledge, we can assist you in realizing your maximum earning potential.
Contact Service Star Realty today.
Service Star Realty
2929 East Camelback Road #119, Phoenix, AZ 85016
(480) 426-9696
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